Two California lenders,
First Regional Bancorp (FRGB.O) and Bank On It Inc (BKOT.OB),
have entered agreements with the Federal Reserve Bank of San
Francisco designed to ensure they remain financially sound, the
regulator said on Thursday.
First Regional, the Los Angeles-based parent of First
Regional Bank, agreed to submit within 60 days a written plan
detailing how it will maintain sufficient capital, including
the sources and timing of additional funds.
Bank On It, the Stockton-based parent of Community Bank of
San Joaquin, agreed to submit within 60 days a statement
detailing its planned sources and uses of cash to pay interest
on debt, operating costs and other expenses for 2009.
Both lenders also agreed not to pay dividends without prior
Fed approval, among other restrictions.
The Fed said the agreements are designed to maintain the
financial soundness of the companies and ensure they are
strong enough to support their banking units.
First Regional lost $23.6 million in 2008 and ended the
year with $2.47 billion of assets, a regulatory filing shows.
Bank on It lost $917,000 in the nine months ended last
September and had $146.8 million of assets, according to its
banking unit's website.
Both banks have reported increases in real estate-related
losses. California has been among the U.S. states hit hardest
by the housing slump.
First Regional shares were down 12 cents to $1.67 in
morning Nasdaq trade. Bank On It shares traded this week at
$6.50 on the Bulletin Board.
(Reporting by Jonathan Stempel; editing by John Wallace)